The week was marked by high volatility in global markets, driven by new tariff policies from US President Donald Trump, concerns about inflation, monetary policy decisions and uncertainty about global economic growth. While Wall Street faced significant declines, the European defense sector and cryptocurrencies stood out. The temporary suspension of tariffs on Canada and Mexico brought momentary relief, but uncertainty still dominates the economic scenario.
Monday: Sharp Declines and Tariff Measures
Markets began the week with a sharp decline after Trump announced a new tariff offensive, significantly affecting global stock indices. The S&P 500 lost around US$3.6 trillion in market capitalization, one of the largest drops recorded in the last year. In Europe, the German DAX fell 3.5% and the Spanish IBEX 35 fell 2.7%, with the industrial and automotive sectors among the most affected.
In the commodities sector, oil fell significantly, reflecting fears of a global economic slowdown. In contrast, the cryptocurrency market showed a mixed performance. Bitcoin rose 6.96%, while other cryptocurrencies such as ADA, RED and SNT registered gains of over 40%.
Warnings about economic growth also gained strength. The UN has projected that tariff escalation and geopolitical tensions could reduce the global growth rate to 2.8% in 2025, below the pre-pandemic average of 3.2%.
Tuesday: Pressure on Stock Exchanges and Rise in the Defense Sector
Pessimism continued to dominate global markets, with major indexes in the US and Europe accumulating additional losses. The industrial and automotive sectors continued to suffer, while the European defense sector stood out positively. Rheinmetall, Europe’s largest arms manufacturer, has appreciated almost 90% year-to-date, driven by increased military spending by countries on the continent.
The oil market continued to fall, with Brent falling 2.5% to US$70 per barrel. Expectations of lower global demand, combined with the possibility of new sanctions and economic uncertainty, weighed on commodity prices.
In the cryptocurrency market, digital assets continued to appreciate, with some altcoins rising by more than 40% on the day. This movement was driven by the search for alternative assets in the face of global uncertainty.
Wednesday: Possibility of Easing Tariffs
After two consecutive days of losses, global stock markets began a partial recovery with signs that Trump could review tariffs on Canada and Mexico. US Commerce Secretary Howard Lutnick indicated that an agreement to ease tariffs could be announced soon.
This possibility brought relief to US futures markets, with the S&P 500, Dow Jones and Nasdaq trading between 0.6% and 0.8% higher in premarket trading. However, US automakers, such as Ford and General Motors, still faced declines due to concerns about the impact of tariffs on their supply chains.
In his State of the Union address, Trump reaffirmed his protectionist stance and highlighted changes in government administration, including Elon Musk’s participation in the Office of Government Efficiency.
The cryptocurrency market saw Bitcoin recover some of its losses, boosted by rumors that the US government could create a strategic reserve of Bitcoin.
Thursday: Tariff Exemption for Automakers and ECB Decision
Wall Street stocks received a brief reprieve after the White House announced a temporary tariff exemption for some automakers, benefiting Ford, General Motors and Stellantis. The decision eased concerns in the automotive sector and sparked speculation that other industries could receive similar exemptions.
In Europe, the European Central Bank (ECB) cut interest rates to 2.50%, but uncertainty about the future of monetary policy remains. Analysts question whether the monetary authority will be able to maintain a path of cuts in the face of rising inflationary pressure and trade tensions with the US.
In the technology sector, Marvell (NASDAQ:MRVL), a leading supplier of artificial intelligence chips, saw its shares fall more than 14% after reporting results below expectations. The market was expecting faster growth due to high demand for AI.
Oil recovered some of its losses after falling to its lowest levels since 2021 as the market awaited further developments in trade talks between the United States, Canada and Mexico.
Friday: Trump Temporarily Suspends Tariffs
U.S. futures markets traded higher, reacting to the news that Trump has temporarily suspended tariffs on Canada and Mexico until April 2. Despite the reversal, the lack of clarity about the government’s next measures keeps uncertainty high.
The technology sector remained under pressure, with the Nasdaq Composite on track to close the week in correction territory. U.S. job creation came in above projections, with 156,000 jobs added in February, which could influence future decisions by the Federal Reserve on interest rate cuts.
Jerome Powell gave a speech, warning about the risks to global growth and reinforcing the need for caution in conducting monetary policy.
Another notable event was Trump signing an executive order to create a strategic reserve of Bitcoin, made up of cryptocurrencies confiscated by the government. This move generated speculation about the future role of crypto assets in the global economy.
A Week of Uncertainty and Strategic Moves
Global financial markets faced a week of extreme volatility, with large swings driven by aggressive US trade policies, central bank decisions and instability in the corporate sector.
The highlights of the week were:
- Stock markets falling sharply, with the S&P 500 recording billion-dollar losses;
- European defense sector rising, driven by increased military spending;
- Cryptocurrencies fluctuating, with Bitcoin rising and then retreating in the face of government statements.
- Oil hitting multi-year lows, but recovering part of its value at the end of the week.
- ECB cutting interest rates, while the Federal Reserve monitors the impact of the trade war.
The coming week will be crucial in determining the direction of the markets, with traders paying close attention to Trump’s upcoming trade decisions, inflation data and global monetary policy.
